If firms in a duopoly with homogeneous products compete on price, ...

[saliriagwu]

If firms in a duopoly with homogeneous products compete on price, a Nash equilibrium is reached when each firm charges a price ________.
 
  A) equal to its average cost
  B) higher than its average cost
  C) equal to its marginal cost
  D) lower than its marginal cost

Question 2

A compensating wage differential is a wage premium paid in order to:
 
  A) recognize a more efficient employee.
  B) attract workers who have a family to support.
  C) improve the goodwill of a firm hiring workers.
  D) attract workers to otherwise undesirable occupations.

[vickyvicksss]

Answer to Question 1

C

Answer to Question 2

D

[saliriagwu]

Thank you

[vickyvicksss]

Happy to help you